Mesa granted another 180 days to show stock worth more than $1 per share

Struggling US regional airline company Mesa Air Group remains at risk of de-listing on the Nasdaq stock exchange, needing to show that its listing price can consistently close higher than $1. The Phoenix-headquartered parent of Mesa Airlines on 6 May disclosed that it had transferred its common stock to a tier of the Nasdaq stock market with less stringent financial and liquidity requirements. Mesa stock has transferred from the Nasdaq Global Select Market to the Nasdaq Capital Market – basically, from the tier with the highest minimum qualifications to the one with the lowest. It will continue trading uninterrupted under the symbol “MESA”, according to a filing with the US Securities and Exchange Commission. In November, Mesa received a notice of non-compliance with the Nasdaq’s listing rules because its listing price had closed below $1 for 30 consecutive business days. The company was granted an 180-day grace period in which to regain its standing, which passed on 1 May without success. Being newly listed on the Nasdaq Capital Market grants Mesa another 180-day grace period. Its stock price needs to close higher than $1 for 10 consecutive business days in order to meet the minimum requirement. The grace period ends on 28 October. If that deadline passes without proof of compliance, Mesa would face de-listing and a likely appeals process, including a hearing. ”The company intends to closely monitor the closing bid price for its shares of common stock and consider all available options to timely remedy the bid price deficiency,” Mesa says, adding that it can ”give no assurance that it will regain or demonstrate compliance” during the second grace period. <br/>